2015 (1) TMI 410

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....them from M/s. S.K.Garg &. Sons , as first stage dealer. On the basis of the invoices issued by M/s. Pawan Steels , M/s. I.J. Tools and Castings , a manufacturer of fences, had taken cenvat credit of Rs. 2 ,21,820 /-. In all the invoices issued by M/s. Pawan Steels to M/s. I.J. Tools & Castings , on the basis of which the above mentioned credit has been taken, the department's allegation is that the second stage dealer, M/s. Pawan Steel have issued invoices without supply of any goods to M/s. I.J. Tools & Castings and this allegation is based on the allegation that M/s. S.K.. Garg & Sons as first stage dealer had no storage godown and for this reason, his registration certificate had been cancelled, therefore, the invoices issued by M/s....

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....allegation is that M/s. S.K. Garg & Sons had not supplied any M.S. Flats and M.S. Bars to M/s. Pawan Steels and had only issued the invoices to M/s. Pawan Steels as M/s. S.K. Garg & Sons did not have any godown and their registration certificate has been cancelled, that it is on this basis only that it is alleged that. M/s. Pawan Steels could not have supplied any goods to M/s. I.J. Tools that no inquiry has been conducted with M/s. S.K.Garg & Sons in respect of supply of M.S. flats and bars to M/s. Pawan Steels , that the appellants at the time of hearing before the Dy. Commissioner had submitted GRs in respect of the transportation of the goods from the premises of M/s. S.K. Garg & Sons to M/s. Pawan Steels , that no inquiry in this regar....

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....Departmental Representative, defended the impugned order by reiterating the findings of the Commissioner (Appeals) and emphasized that the appellant's plea is that while M/s. Pawan Steels had procured the goods supplied by them to M/s. I.J. Steels from M/s. S.K. Garg & Sons , the first stage dealer, the fact is that M/s. S.K. Garg & Sons had no premises,and the records show that there is big time gap between the date on which M/s. S.K. Garg & Sons procured the goods supplied by them to M/s. Pawan Steels from the manufacturers and date on which the invoices were issued by M/s. S.K. Garg & Sons to M/s. Pawan Steels and this shows that M/s. S.K. Garg & Sons had only issued bogus invoices without supply of goods and therefore, M/s. Pawan St....

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....This big gap between the date on which M/s. S.K. Garg & Sons are supposed to have received the materials from manufacturers/importers, and the date on which they have shown the sales of that material to M/s. Pawan Steels cast very serious doubt about the transactions of M/s. S.K. Garg & sons with M/s. Pawan Steels , as when M/s. S. K. Garg & sons had no godown as no office, they could not have stored the materials received from the manufacturers / importers for 2 to 3 weeks. Therefore, even though no inquiry has been made with M/s. S.K.Garg & Sons, on the basis of the details available in the invoices issued by M/s. Pawan Steels , the transactions of M/s. Pawan Steels with M/s. I.J. Tools and Castings became highly doubtful, the at least, 1....